«Government of India Ministry of Finance Department of Expenditure General Financial Rules, 2005* (* Amendments issued upto March 2010 have been added as ...»
(ix) Procedure proposed to be followed for midterm review of the progress of the work and review of the final draft report.
Rule 172. Receipt and opening of proposals : Proposals should ordinarily be asked for from consultants in ‘Twobid’ system with technical and financial bids sealed separately.
The bidder should put these two sealed envelops in a bigger envelop duly sealed and submit the same to the Ministry or Department by the specified date and time at the specified place. On receipt, the technical proposals should be opened first by the Ministry or Department at the specified date, time and place.
Rule 173. Late Bids : Late bids i.
e. bids received after the specified date and time of receipt, should not be considered.
Rule 174. Evaluation of Technical Bids : Technical bids should be analysed and evaluated by a Consultancy Evaluation Committee (CEC) constituted by the Ministry or Department.
The CEC shall record in detail the reasons for acceptance or rejection of the technical proposals analysed and evaluated by it.
Rule 175. Evaluation of Financial Bids of the technically qualified bidders : The Ministry or Department shall open the financial bids of only those bidders who have been declared technically qualified by the Consultancy Evaluation Committee as per Rule 174 above for further analysis or evaluation and ranking and selecting the successful bidder for placement of the consultancy contract.
Rule 176. Consultancy by nomination : Under some special circumstances, it may become necessary to select a particular consultant where adequate justification is available for such single-source selection in the context of the overall interest of the Ministry or Department.
Full justification for single source selection should be recorded in the file and approval of the competent authority obtained before resorting to such single-source selection.
Rule 177. Monitoring the Contract : The Ministry/Department should be involved throughout in the conduct of consultancy, preferably by taking a task force approach and continuously monitoring the performance of the consultant(s) so that the output of the consultancy is in line with the Ministry /Department’s objectives.
OUTSOURCING OF SERVICESRule 178. Outsourcing of Services : A Ministry or Department may outsource certain services in the interest of economy and efficiency and it may prescribe detailed instructions and procedures for this purpose without, however, contravening the following basic guidelines.
Rule 179. Identification of likely contractors : The Ministry or Department should prepare a list of likely and potential contractors on the basis of formal or informal enquiries from other Ministries or Departments and Organisations involved in similar activities, scrutiny of ‘Yellow pages’, and trade journals, if available, web site etc.
Rule 180. Preparation of Tender enquiry : Ministry or Department should prepare a tender enquiry containing, inter
(i) The details of the work or service to be performed by the contractor;
(ii) The facilities and the inputs which will be provided to the contractor by the Ministry or Department;
(iii) Eligibility and qualification criteria to be met by the contractor for performing the required work/service;
and (iv) The statutory and contractual obligations to be complied with by the contractor.
Rule 181. Invitation of Bids:
(a) For estimated value of the work or service upto Rupees ten lakhs or less : The Ministry or Department should scrutinise the preliminary list of likely contractors as identified as per Rule 179 above, decide the prima facie eligible and capable contractors and issue limited tender enquiry to them asking for their offers by a specified date and time etc. as per standard practice. The number of the contractors so identified for issuing limited tender enquiry should not be less than six.
(b) For estimated value of the work or service above Rupees ten lakhs: The Ministry or Department should issue advertised tender enquiry asking for the offers by a specified date and time etc. in at least one popular largely circulated national newspaper and web site of the Ministry or Department.
Rule 182. Late Bids : Late bids i.
e. bids received after the specified date and time of receipt, should not be considered.
Rule 183. Evaluation of Bids Received : The Ministry or Department should evaluate, segregate, rank the responsive bids and select the successful bidder for placement of the contract.
Rule 184. Outsourcing by Choice : Should it become necessary, in an exceptional situation to outsource a job to a specifically chosen contractor, the Competent Authority in the Ministry or Department may do so in consultation with the Financial Adviser.
In such cases the detailed justification, the circumstances leading to the outsourcing by choice and the special interest or purpose it shall serve shall form an integral part of the proposal.
Rule 186. This chapter contains the basic rules applicable to all Ministries or Departments regarding inventory management.
Detailed instructions and procedures relating to inventory management may be prescribed by various Ministries or Departments broadly in conformity with the basic rules contained in this chapter.
Rule 187. Receipt of goods and materials from private suppliers :
(1) While receiving goods and materials from a supplier, the officer–in-charge of stores should refer to the relevant contract terms and follow the prescribed procedure for receiving the materials.
(2) All materials shall be counted, measured or weighed and subjected to visual inspection at the time of receipt to ensure that the quantities are correct, the quality is according to the required specifications and there is no damage or deficiency in the materials. Technical inspection where required should be carried out at this stage by Technical Inspector or Agency approved for the purpose. An appropriate receipt, in terms of the relevant contract provisions may also be given to the supplier on receiving the materials.
(3) Details of the material so received should thereafter be entered in the appropriate stock register. The officer-in-charge of stores should certify that he has actually received the material and recorded it in the appropriate stock registers.
Rule 188. Receipt/issue of goods and materials from internal divisions of the same organisation :
(1) The indenting officer requiring goods and materials from internal division(s) of the same organisation should project an indent in the prescribed form for this purpose. While receiving the supply against the indent, the indenting officer shall examine, count, measure or weigh the materials as the case may be, to ensure that the quantities are correct, the quality is in line with the required specifications and there is no damage or deficiency in the materials. An appropriate receipt shall also be given to this effect by the indenting officer to the division sending the materials.
(2) In the case of issue of materials from stock for departmental use, manufacture, sale, etc., the Officer-incharge of the stores shall see that an appropriate indent, in the prescribed form has been projected by the indenting officer. A written acknowledgement of receipt of material issued shall be obtained from the indenting officer or his authorised representative at the time of issue of materials.
(3) In case of materials issued to a contractor, the cost of which is recoverable from the contractor, all relevant particulars, including the recovery rates and the total value chargeable to the contractor should be got acknowledged from the contractor duly signed and dated.
(4) If the Officer-in-charge of the stores is unable to comply with the indent in full, he should make the supply to the extent available and make suitable entry to this effect in the indentor’s copy of the indent. In case alternative materials are available in lieu of the indented materials, a suitable indication to this effect may be made in the document.
Rule 189. Custody of goods and materials : The officer-in-charge of stores having custody of goods and materials, especially valuable and/or combustible articles, shall take appropriate steps for arranging their safe custody, proper storage accommodation, including arrangements for maintaining required temperature, dust free environment etc.
Rule 190. Lists and Accounts :
(1) The Officer-in-charge of stores shall maintain suitable item-wise lists and accounts and prepare accurate returns in respect of the goods and materials in his charge making it possible at any point of time to check the actual balances with the book balances.
The form of the stock accounts mentioned above shall be determined with reference to the nature of the goods and materials, the frequency of the transactions and the special requirements of the concerned Ministries/Departments.
(2) Separate accounts shall be kept for (i) Fixed Assets such as plant, machinery, equipment, furniture, fixtures etc. in the Form GFR-40.
(ii) Consumables such as office stationery, chemicals, maintenance spare parts etc. in the Form GFR-41.
(iii) Library books in the Form GFR 35 (iv) Assets of historical/artistic value held by museum/government departments in the Form GFR-42.
Note : These forms can be supplemented with additional details by Ministries/Departments as required.
Rule 191. Hiring out of Fixed Assets : When a fixed asset is hired to local bodies, contractors or others, proper record should be kept of the assets and the hire and other charges as determined under rules prescribed by the competent authority, should be recovered regularly.
Calculation of the charges to be recovered from the local bodies, contractors and others as above should be based on the historical cost.
(1) Physical verification of Fixed Assets : The inventory for fixed assets shall ordinarily be maintained at site. Fixed assets should be verified at least once in a year and the outcome of the verification recorded in the corresponding register. Discrepancies, if any, shall be promptly investigated and brought to account.
(2) Verification of Consumables : A physical verification of all the consumable goods and materials should be undertaken at least once in a year and discrepancies, if any, should be recorded in the stock register for appropriate action by the competent authority.
(3) Procedure for verification :
(i) Verification shall always be made in the presence of the officer, responsible for the custody of the inventory being verified.
(ii) A certificate of verification alongwith the findings shall be recorded in the stock register.
(iii) Discrepancies, including shortages, damages and unserviceable goods, if any, identified during verification, shall immediately be brought to the notice of the competent authority for taking appropriate action in accordance with provision given in Rule 33 to 38.
Rule 193. Buffer Stock : Depending on the frequency of requirement and quantity thereof as well as the pattern of supply of a consumable material, optimum buffer stock should be determined by the competent authority.
Note : As the inventory carrying cost is an expenditure that does not add value to the material being stocked, a material remaining in stock for over a year shall generally be considered surplus, unless adequate reasons to treat it otherwise exist.
Rule 194. Physical verification of Library books :
(i) Complete physical verification of books should be done every year in case of libraries having not more than twenty thousand volumes. For libraries having more than twenty thousand volumes and upto fifty thousand volumes, such verification should be done at least once in three years. Sample physical verification at intervals of not more than three years should be done in case of libraries having more than fifty thousand volumes. In case such a verification reveals unusual or unreasonable shortages, complete verification shall be done.
(ii) Loss of five volumes per one thousand volumes of books issued/consulted in a year may be taken as reasonable provided such losses are not attributable to dishonesty or negligence. However, loss of a book of a value exceeding Rs. 1,000/- (Rupees One thousand only) and rare books irrespective of value shall invariably be investigated and appropriate action taken.
Rule 195. Transfer of charge of goods, materials etc.
: In case of transfer of Officer-in-charge of the goods, materials etc., the transferred officer shall see that the goods or material are made over correctly to his successor. A statement giving all relevant details of the goods, materials etc., in question shall be prepared and signed with date by the relieving officer and the relieved officer. Each of these officers will retain a copy of the signed statement.
Rule 196. Disposal of Goods.
(i) An item may be declared surplus or obsolete or unserviceable if the same is of no use to the Ministry or Department. The reasons for declaring the item surplus or obsolete or unserviceable should be recorded by the authority competent to purchase the item.
(ii) The competent authority may, at his discretion, constitute a committee at appropriate level to declare item(s) as surplus or obsolete or unserviceable.
(iii) The book value, guiding price and reserved price, which will be required while disposing of the surplus goods, should also be worked out. In case where it is not possible to work out the book value, the original purchase price of the goods in question may be utilised. A report of stores for disposal shall be prepared in Form GFR - 17.
(iv) In case an item becomes unserviceable due to negligence, fraud or mischief on the part of a Government servant, responsibility for the same should be fixed.
Rule 197. Modes of Disposal :
(i) Surplus or obsolete or unserviceable goods of assessed residual value above Rupees Two Lakh should be
disposed of by :
a) obtaining bids through advertised tender or
b) public auction.
(ii) For surplus or obsolete or unserviceable goods with residual value less than Rupees Two Lakh, the mode of disposal will be determined by the competent authority, keeping in view the necessity to avoid accumulation of such goods and consequential blockage of space and, also, deterioration in value of goods to be disposed of.
(iii) Certain surplus or obsolete or unserviceable goods such as expired medicines, food grain, ammunition etc., which are hazardous or unfit for human consumption, should be disposed of or destroyed immediately by adopting suitable mode so as to avoid any health hazard and/or environmental pollution and also the possibility of misuse of such goods.
(iv) Surplus or obsolete or unserviceable goods, equipment and documents, which involve security concerns (e.g. currency, negotiable instruments, receipt books, stamps, security press etc.) should be disposed of/ destroyed in an appropriate manner to ensure compliance with rules relating to official secrets as well as financial prudence.
Rule 198. Disposal through Advertised Tender.
(i) The broad steps to be adopted for this purpose are as follows :
a) Preparation of bidding documents.
b) Invitation of tender for the surplus goods to be sold.
c) Opening of bids.
d) Analysis and evaluation of bids received.
e) Selection of highest responsive bidder.
f) Collection of sale value from the selected bidder.
g) Issue of sale release order to the selected bidder.
h) Release of the sold surplus goods to the selected bidder.
i) Return of bid security to the unsuccessful bidders.